The only reason I bring annuities into the discussion is after someone claims it will cost $4 million to replace our maxed A fund, no it is about $2 million and an annuity has all of the same bells and whistles of survivor benefits with roughly the same effects on payout. And in fact I’ll be willing to bet one of the proposals of the VAPP is buying an annuity for a pilot as he retires.
True if the company bought an annuity they lose if you die early but win if you die late. They are rich enough to cut out the middleman and the slice he takes when you buy an annuity, so they self insure. They give a big enough chunk to the PBGC.
I certainly agree about the education, it would certainly be helpful to know how much FDX contributes per pilot and per new hire to fund our A Plan. But once you realize the Union’s fondness for the VAPP is their desire to remove the 25 year ceiling it makes a little more sense.